debt service

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Debt service

Interest payment plus repayments of principal to creditors (retirement of debt).

Debt Service

The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt." An example of debt service is a monthly student loan payment. See also: Debt service coverage ratio.

debt service

Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.

debt service

The amount necessary to make principal and interest payments on a loan.It does not include amounts collected each month as a reserve for insurance or real estate taxes and does not include payments for private mortgage insurance.

References in periodicals archive ?
In broad terms, funding agreements are nonqualified annuities or annuity-like instruments that are designed specifically to generate regular cash flows to service the debt on short-term or medium-term notes issued through a securitization vehicle--a trust and/or special-purpose vehicle.
To enable the district to service the debt in the event taxable values remain flat after current construction is completed, the district is raising its maximum mill levy to 30 from the current self-imposed limit of 20 (although state law allows up to 50 mills).
As a result of the 1983 banking crisis, Banco de Chile became burdened with a central bank subordinated debt liability, which resulted in a large portion of its net income being used to service the debt.
In common with other Chilean banks, as a result of the 1983 banking crisis, Banco de Chile became burdened with a central bank subordinated debt liability, which resulted in a large portion of its net income being used to service the debt.